China disagrees to the suggestion of a "Group of Two" (G2), Chinese Premier Wen Jiabao said at a meeting with visiting U.S. President Barack Obama?on Wednesday.

China is still a developing country with a huge population and has a long way to go before it becomes modernized, Wen said, stressing "We must always keep sober-minded over it".

China pursues the independent foreign policy of peace and will not align with any country or country blocks, Wen said.

Global issues should decided by all nations in the world, rather than one or two countries, he added.

"Meanwhile, we believe Sino-U.S. cooperation can play a unique role in advancing the establishment of the new international political and economic order, as well as promoting world peace, stability and prosperity," Wen said.

Wen noted that the bilateral trade volume between China and the United States has increased greatly since the two countries established diplomatic ties 30 years ago.

"This is in the fundamental interests of both countries and their people," Wen said. "We do not pursue trade surplus and I hope the United States would lift its policy of restricting high-tech products exports to China and increase their proportion in the U.S. exports to China.

"Meanwhile, our two countries should strengthen mutual investment and cooperation in such fields as energy, environmental protection and high technology for a more balanced bilateral trade," Wen said.

The revival of world trade and investment is beneficial to the global effort to cope with the financial crisis and help accelerate the recovery of the world economy, he said.

"China and the United States should work together to fight against protectionism in trade and investment," Wen said.

Obama, who described U.S.-China relations as of global significance, said U.S.-China cooperation is crucial as far as major global issues such as economic recovery, climate change and regional and global peace are concerned.

He hoped the two countries would abandon distrust and misunderstanding, strengthen exchange and cooperation, so as to push U.S.-China relations forward.

The United States appreciates and supports the Chinese government's efforts in developing the economy and reducing poverty, said Obama, adding that the development of China is beneficial to the world.

The United States and China are important trade partners for each other, which has brought huge benefits to both countries, while trade protectionism does no good to either side, Obama said.

He said the United States appreciates China's efforts to adjust the economic structure, expand domestic demand, protect intellectual property rights and reform the Renminbi exchange rate regime.

The United States would properly handle bilateral trade frictions so that they would not harm the interests of the two countries, Obama said.

The United States has noted China's concern over the export control to China and is willing to take measures and increase high-tech product exports to China, he added.

Before their formal meeting in the State Guesthouse Wednesday morning, Wen said Obama's fruitful visit, the first state visit to China since he took office in January, would be of far-reaching significance.

He expressed his "sincere hope" that Obama's China visit would lift the comprehensive and cooperative China-US relations to a new level.

"The history of Sino-US relations has made it clear that cooperation benefits both sides while confrontation results in harms, and mutual trust brings progress while suspicion causes setbacks," Wen said.

Cooperation is better than containment, dialogue is better than confrontation, and partnership is better than rivalship, he added.

Wen and Obama also exchanged views on global climate change, the Korean Peninsula situation, the Middle East issue and Doha round of world trade talks.

Obama arrived in Shanghai on Sunday night to kick off his four-day visit to China, where on Monday he met with municipal officials and college students and then flied to Beijing in the afternoon.

On Tuesday in Beijing, Chinese President Hu Jintao held talks with Obama, and they reached a wide range of agreements on furthering strategic mutual trust, maintaining exchanges at all levels and meeting global and regional challenges together.

A joint statement was issued after the talks.

Obama also met with China' top legislator Wu Bangguo during his stay in Beijing.